Reason for 'Stop-Loss should be less than Limit Price

Why am I getting an error stating 'Stop loss should be less than limit price'?

The error 'Stop loss should be less than limit price' is a protective measure ensuring your trades are logically consistent. When placing a Buy order:
  1. Limit Price: Represents the maximum price you're willing to pay for a stock.
  2. Stop-Loss: Acts as a safeguard, setting a price to sell the stock if it starts moving against your expectations.
Given this, it's important that the stop-loss (selling price) be set lower than the limit price (buying price). For instance, if purchasing 100 shares of SBIN Ltd. at a limit price of ₹500, setting a stop-loss at ₹480 ensures you'll automatically sell if the market price dips below ₹480, protecting against potential larger losses.



    • Related Articles

    • Why am I getting an error stating "Limit price should be in multiples of 0.05"?

      When placing an order in Equity and Equity Derivatives, it's essential to ensure the limit price aligns with specific increments to maintain market stability and orderliness. As such, on FYERS, the limit price must be set in multiples of 0.05. If ...
    • Can I place SL-M (Stop Loss-Market) and SL-L (Stop Loss-Limit) orders with Quick Trade?

      Yes, Quick Trade supports both SL-M (Stop Loss-Market) and SL-L (Stop Loss-Limit) orders for Intraday trades. Here’s how each works: SL-M (Stop Loss-Market): This order type triggers a market order once the stop-loss price is reached, ensuring that ...
    • How to modify the stop-loss?

      In trading, stop-loss is one of the integral parts that help you in risk management. Generally, stop loss is placed along with the multi-legged orders such as Cover Orders and Bracket Orders. Once CO or BO is placed, you can easily modify the ...
    • How do I place stop-loss orders in the Scalper Terminal?

      Managing risk is a critical part of trading, and placing stop-loss orders helps automate your exit strategy. In the FYERS Scalper Terminal, stop-loss orders are not supported through Quick Trade Mode. Instead, you’ll need to use the standard order ...
    • How to modify or update stop-loss for an open position in FYERS?

      If market conditions change after placing a stop-loss, you can easily modify the trigger or limit price for better risk management. FYERS lets you update an existing stop-loss order from the same Positions view. How to modify an existing stop-loss Go ...